The Tool Desk
Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Marc Halpern, CEO of Foundation Mortgage, says the rapid growth of non-qualified mortgage (non-QM) lending could lead to “natural attrition” among lenders that lack the experience to underwrite loans and sell them to investors. His warning is an industry executive’s assessment—not a verified forecast that smaller lenders as a group are failing.
The distinction matters for borrowers and mortgage professionals: an August 18, 2026 interview in Mortgage Professional America describes possible pressure points, but does not establish market-wide failure rates, buyback frequency, or margin data.
Why Halpern thinks some non-QM lenders may struggle
Non-QM loans are mortgages that do not fit the standard qualified-mortgage category. They may use alternative ways to document a borrower’s ability to repay, including bank statements in some cases. Halpern’s concern is that a crowded field of new lenders may include companies that have not yet learned the operational demands of this lending model.
In the interview, he points to delegated underwriting and selling loans to takeout investors as areas where experience matters. Lenders that misjudge eligibility, documentation, or investor requirements may face loans that are harder to sell or that come back to them. Halpern summarized his skepticism about some newcomers: “I don’t know who these people are. And it’s not so easy.”
#1 Best Overall
What buybacks and early payment defaults can signal
A buyback occurs when a lender is required to repurchase a loan, often after a purchaser identifies a breach of representations or other loan defects. An early payment default (EPD) is a loan that becomes delinquent soon after origination. Both can create losses or cash-flow strain, but the interview does not provide a sector-wide buyback rate or EPD rate.
Halpern said he had heard of one company dealing with 60 buybacks and remarked, “There’s not too many companies that can eat 60 loans, even if you’re breaking even on them.” This is an attributed anecdote, not independently verified data about that company or evidence of the frequency of buybacks across non-QM lenders.
He also described Foundation Mortgage’s own experience: the EPD buybacks that came back to the company were concentrated among lower-credit-score loans. One example involved a 646 credit score and a low loan-to-value ratio. That case illustrates a company-specific observation; it does not establish that lower credit scores predict EPDs across the market.
How much evidence is there of a crowded field or lender exits?
The interview does not quantify how many non-QM lenders have entered the market, how many have exited, or whether smaller companies are failing at a higher rate. Halpern’s expectation that there will be “a natural attrition within companies not able to make it” is his forecast as an industry participant.
Do these 3 things before closing this tab:
1Scan for outdated or missing drivers - takes under a minute2Clear out junk files and repair common Windows errors3Fix the driver behind crashes, sound loss and screen glitchesNor does the piece establish a market-wide margin squeeze. Halpern describes investors seeking to get closer to loans and wholesale lenders seeking to get closer to funding, which he sees as pressure on both ends of the chain. The interview supplies no margin measurements or comparable lender pricing to show the scale of that pressure.
What Foundation Mortgage’s figures do—and do not—show
Halpern said P&L loans make up less than 5% of Foundation Mortgage’s business, citing performance problems he says have appeared across the industry. That figure describes Foundation’s own business mix, not the non-QM market as a whole. The interview provides no broader data to determine whether other lenders have similar exposure or results.
Rank #4
- Easy To Track Your Finances: HAUTOCO accounting ledger book keeps you on top of your expenses and income! Help you keep your money organized, spend well, and set and achieve financial goals
- Premium Material: The A5 accounting ledger book has a total of 120 pages and 2040 lines of entries. It is made of 100gsm thick paper to reduce ink leakage; it is equipped with a waterproof and sturdy PP cover to protect the inner pages
- Practical Design: Compact 8.3 x 6.2'' expense tracker notebook is easy to carry and features information pages, 2025 calendar, yearly financial goals page, and PVC pocket for storing important tickets and loose items
- Manage Your Finances Effectively: Undated accounting books with number, date, description, account, payment or deposit amount, and total balance. You will be able to easily analyze your financial activities and quickly prepare accurate financial statements
- Ideal For Small Business or Personal Use: An accounting log journal can track your business or personal financial status. With a clear record of transactions, you can find unnecessary expenses or fraudulent charges
Why bank-statement loans come up in the discussion
Halpern argues that bank-statement loans can help some investors whose tax filings do not reflect their actual income. His example is a borrower earning $600,000 to $700,000 a year who wants to buy a $2 million property but may not qualify using tax returns. He described bank-statement pricing in that example as close to agency pricing.
Those numbers and the pricing comparison are Halpern’s illustration, not a market survey or a current rate quote. Whether a borrower qualifies, what documentation is accepted, and how a loan is priced depend on the lender’s current terms and the borrower’s circumstances; the interview does not compare offers from lenders.
Crashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteWindows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallWhat borrowers and mortgage professionals should evaluate
The interview does not rank lenders or provide current comparable loan terms. Anyone assessing a non-QM lender can use the concerns it raises as prompts for due diligence:
- Underwriting experience: Ask how the lender reviews the relevant documentation and handles loans with nonstandard income.
- Loan eligibility and documentation: Confirm the specific requirements that apply to the borrower’s loan, rather than relying on a general description of a product.
- Funding and takeout reliability: Understand how the lender funds loans and whether its intended investor or takeout arrangements are in place.
- Pricing: Compare current written terms, including the costs and conditions that apply to the specific borrower.
- Servicing and support: Clarify who will service the loan and what support is available if documentation or payment issues arise.
These checks do not predict which lenders will survive. They help distinguish a lender’s stated offering from the operational details that can matter when a mortgage uses nonstandard underwriting.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
